Corporate Results Hold Rally in Check

The major averages closed mixed Tuesday as stocks again showed resilience amid a whirlwind of corporate news and commentary.

The Dow Jones Industrial Average ended up 20 points at 10,247, while the S&P 500 finished flat at 1093. The Nasdaq ticked down 3 to 2151. Those moves came after the Dow reached a new 52-week high Monday as investors brushed off concerns about the rally's durability.

"I think that if you're bulls, the market action today is probably pretty encouraging considering the big move that we've had and that we’re not really giving much back," says Michael James, managing director at Wedbush Morgan Securities.

As long as the dollar remains relatively weak, money will likely continue to flow into equities, James says.

Despite the broader resilience, financials were a weak area with the KBW Bank index down 1.4% after a string of mixed headlines.

On the rosier side, shares of American International Group (AIG) popped after Moody's Investor Services said the insurance giant should be able to repay its loan from the government if its operations and global financial markets continue to stabilize.

Bank of America (BAC) shares also advanced after soon-to-be-retired CEO Ken Lewis said economic progress is happening, but slowly.

"If we are seeing the beginnings of a real, sustainable recovery, it is still in its very early stages and is still very fragile," he said. "But the economic signs as I read them give us reason to believe that we may be on the path to better days."

But other corporate news was dim. MBIA (MBI), the world's largest bond insurer, posted a $727.8 million loss on insured credit derivatives. Separately, engineering and construction company Fluor (FLR) said third quarter earnings fell 11% and cut its full-year earnings forecast.

Meanwhile, Barclays (BCS) said its third-quarter net profit fell 54% year over year to 1.08 billion pounds ($1.81 billion), while impairment charges and other credit provisions totaled 1.4 billion pounds.

Earnings outside of financials were more upbeat, however, as travel-booking web site Priceline (PCLN) trounced expectations, sending the stock higher.

A Treasury auction that garnered higher than average demand also offered investors some reassurance. The government sold a record $25 billion in 10-year notes with a high yield at 3.470%, and a bid-to-cover ratio – an indication of demand -- of 2.81, which topped the recent average.

Elsewhere, commentary from Federal Reserve officials drew attention. San Francisco Fed President Janet Yellen and Atlanta Fed President Dennis Lockhart said the economic recovery was underway, but struck a cautious tone.

Conditions have improved, but there remain "sobering aspects of the economic picture," Lockhart said at a conference in Atlanta.

Stocks overseas were mixed. In Europe, the FTSE in London was down 0.01%, while the Dax in Frankfurt edged up 0.1%. In Asia, the Nikkei in Japan and Hang Seng in Hong Kong rose 0.6% and 0.3%, respectively.

Crude oil, which at one point topped $80 a barrel, gave up 34 cents to $79.09 a barrel, while gold added $1.10 to settle at $1,102.50 an ounce.